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Get your taxes done using TurboTax
Hi Rvhunt, thank you for joining the "Ask the Experts: Moving" special forum today.
Congrats on the move to WA state, a no income tax state.
For tax year 2021, you are part year CA resident and part year WA resident. You would need to report income earned in CA or sourced in CA on the part year CA resident return.
To answer your questions:
1. Unless you are military, the moving expense deduction has been suspended for tax years 2018 through 2025 as a result of the Tax Cuts and Jobs Act that was signed into law in late December of 2017. In general, for personal move, there is no tax deductions.
2. Since the rental property is in CA, you would need to report the total rental activity in CA return. Interest and Dividend can be allocated by time in CA if earned evenly throughout the year. Capital gains can be determined by the sale dates - in CA or WA. Below is a great article.
How do I allocate (split) income for a part-year state return?
3. Yes, TurboTax is more than competent handling your move for income tax reporting. All income is reported in Federal tax return. Below article shows you how to properly enter data in Personal Info regarding your move, so the program calculates accurate CA filing.
How do I file a part-year state return?
https://ttlc.intuit.com/community/state-taxes/help/how-do-i-file-a-part-year-state-return/00/26057
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